Skip to main content

Bringing commercial deals into focus

National Mortgage Professional
Jan 12, 2006

GMAC survey reveals low consumer knowledge about credit ratingsMortgagePress.comCredit rating information According to the recent GMAC Mortgage Second Quarter Consumer Survey, U.S. consumers lack important knowledge about credit scores. The survey revealed that the majority of consumers do not fully understand the importance of a credit score, how that score is determined and, most importantly, the steps they can take to improve credit scores. The survey polled more than 1,000 consumers nationwide on the impact of credit on the entire home financing process. Key findings include the following: †Sixty-two percent of respondents did not know that a score above 620 out of 850 is necessary to secure the most favorable mortgage rate. †More than 50 percent of respondents incorrectly answered that increased income level would raise their credit score. †Only 42 percent knew that payment history was a critical determinant to a credit score. †Sixty-four percent of respondents would check their credit only six months before purchasing a home. "Potential homebuyers should not view credit ratings as the last step in the home financing process," said Paul Fein, senior vice president and Southeast divisional manager for GMAC Mortgage. "Credit scores are essential to the mortgage lending process, and it's important that homebuyers start evaluating their credit scores early in the process, so they can get above the 620 mark before their formal application is processed. We are encouraged to see that 92 percent of consumers polled are taking some action to improve their credit; however consumers must be educated on what actions will and will not affect their ability to secure home financing." As noted by the national credit rating agencies, an individual's credit rating is attained by calculating and evaluating several factors, including payment history during the last two to three years, amount of debt outstanding and available lines of credit, length of credit history, new lines of credit and types of credit used. However, other factors, such as the number of accounts with outstanding balances, proportion of credit used, length of account activity and number of recent credit inquiries also play a significant role. GMAC Mortgage and CARAVAN Opinion Research Corporation conducted a national telephone survey of 1,057 households nationwide between May 13 and May 16. For a sample of 1,000, the margin is plus or minus three percentage points at the 95 percent confidence level. For more information, visit www.gmacmortgage.com.
Published
Jan 12, 2006
ChainLogix Appoints New Vice President, Operations

Jeryl Graham hired to accelerate growth in title & mortgage services.

Industry News
Oct 15, 2021
JPMorgan Chase To Commit $8.4M To Improve Household Stability For The Underserved

JPMorgan Chase announced six organizations that will receive philanthropic capital as part of the firm’s $400 million five-year commitment to improve housing affordability and stability for Black, Hispanic and Latino, and other underserved households.

Community
Oct 15, 2021
SRE Mortgage Alliance Closing Wholesale Mortgage Division

Technology-based wholesale lender terminating all staff in El Segundo, Calif., by Oct. 31

Wholesale
Oct 15, 2021
Ginnie Mae Issued Record MBS Volume In FY2021

The record $939 billion issued included nearly $73 billion in September.

Industry News
Oct 14, 2021
UWM Completes Test Of Cryptocurrency Mortgage Payments

United Wholesale Mortgage evaluated and accepted the first-ever cryptocurrency mortgage payment in September and an additional five payments in October from borrowers.

Industry News
Oct 14, 2021
Arvielo Re-Appointed To HUD Advisory Committee

Nationwide mortgage lender New American Funding’s Co-Founder and President Patty Arvielo has been re-appointed to serve on the U.S. Department of Housing & Urban Development's Housing Counseling Federal Advisory Committee.

Industry News
Oct 13, 2021